Tech giant Meta is reportedly exploring the integration of stablecoins into its platforms, signaling a potential rekindling of its crypto ambitions years after the ill-fated Diem project. The move, as reported by Fortune and citing five sources familiar with the matter, aims to leverage stablecoins to reduce payment costs, particularly for services like compensating Instagram creators, The Block reported.
While no specific stablecoin has been identified, Meta’s renewed interest comes amidst a shifting regulatory landscape in the U.S., with a more favorable approach towards cryptocurrency emerging since President Trump’s inauguration. This has ignited a scramble among big tech firms, banks, and stablecoin providers to influence upcoming stablecoin regulations.
Further fueling speculation, Meta recently onboarded former Ripple executive Ginger Baker as Vice President of Product. The company is also said to have reached out to various crypto infrastructure firms, looking into ways to lower fees associated with cross-regional payments. Notably, Ripple is in the process of launching its own stablecoin and has reportedly made overtures to acquire Circle, the issuer of the second-largest stablecoin, USDC.
This isn’t Meta’s first foray into the digital asset space. In 2019, then-Facebook launched a stablecoin division called Libra, which aimed to create a dollar-pegged digital asset backed by a basket of fiat currencies. However, those plans were derailed by a significant regulatory backlash, leading to Libra’s rebranding as Diem in December 2020 in an attempt to salvage its image.
The Diem division ultimately ceased operations, with its intellectual property sold to Silvergate Bank, which later declared bankruptcy. Despite Meta’s direct withdrawal, the underlying technology continues to influence newer blockchains like Aptos, Movement, and Sei, all built using Diem’s bespoke MOVE programming language.
Meta has, however, maintained a low-key presence in the crypto realm, filing trademark applications in 2022 and 2023 for digital asset-related projects, including crypto trading, blockchain-focused hardware, and digital asset exchange services. These filings had previously drawn concern from lawmakers, including California Democrat Maxine Waters.
The total stablecoin supply currently stands at an estimated $232.14 billion as of May 8, according to The Block’s Data Dashboard, with Tether’s USDT and Circle’s USDC dominating the market. Meta’s potential re-entry into this burgeoning sector could significantly impact the evolving digital payments landscape.
